Income Protection Insurance
Income protection insurance pays up to 75% of your income if you suffer a sickness or accident, leaving you unable to work.
A claim benefit is typically a monthly payment that can be used to cover:
- Rent or mortgage payments
- Ongoing living expenses
- Medical costs
Basic Features
Most Australian insurers will offer the following benefits in their income protection policy:
- 24/7 worldwide coverage
- Partial disablement
- Severe or total disablement
- Recurring disablement
- A range of waiting period options (14, 30, 60, 90 days)
- A range of benefit periods (2 or 5 years or until age 65 or 70)
Additional Benefits
The following benefits are usually at extra cost, but may be beneficial depending on your occupation or situation:
- Specified injury benefit
- Dual disablement definitions
- Critical illness benefit option
Income Protection & Tax
Income protection insurance is generally tax deductible. To make a claim you simply need to provide all the details of your premium payment to your tax agent.
Due to its tax deductibility, income protection insurance is a cost effective means of covering your income earning ability.
However please note that should you make a claim on your policy you will need to pay income tax on any benefits paid.
Types of income protection insurance in Australia
In Australia, there are two main types of income protection insurance, agreed or indemnity value cover.
Indemnity value assesses your income at claim time, whereas agreed value assesses your income at application time.
There are pro's and cons for each type and one of our financial advisers can help you determine which is best for you.
Income Protection Quotes
Our income protection quotes compare the top Australian insurers and take into account your personal situation such as your occupation, age, gender, budgetary requirements.
For a free income protection quote comparison simply call us on 1300 882 762 or complete a quote request.
